The March quarter GDP for Australia was incredibly strong at +1.3% and had our Treasurer boasting about the growth in the economy.
But was it real, or a statistical fluke? Mining is growing, but elsewhere we don’t see any signs of massive growth that would support such a figure in coming quarters, unfortunately. When the June quarter figures come out on September 5, they are likely to show a much lower figure and the March figure itself may get revised.
This view was supported this morning in the release of data for business credit demand by Veda and reported in SMH below. Their business credit index fell to 4.5% down from 8.8% a quarter earlier, which they describe as:
“The latest data suggests a softening in the pace of real GDP growth after a very strong March quarter,” Mr Samaha said on Tuesday.
“This could mean that we will see a slowdown in GDP growth in coming quarters.”
Read more: http://www.news.com.au/business/companies/sharp-drop-in-business-demand-for-credit-hints-at-growth-downturn/story-fnda1bsz-1226439057434#ixzz22A4CS7OC